Wine fund on board of Laroche after doubling stake

The International Wine Investment Fund will take a seat on the board of Group Laroche after doubling its stake in the French wine producer.

Berren Asset Management, which manages the fund, yesterday announced it had pumped in an extra $1.1 million to lift its stake from 4.1 to 8.1 per cent.

This bolsters the $1.3 million the fund has already invested in Laroche.

It is also on top of the $11 million the fund invested in another French wine producer, Gabriel Meffre. It owns 25 per cent of Meffre and provides two of its six directors.

Berren chief executive officer Chris Day said the fund would be looking to increase its holding in Laroche to 10 per cent, taking another 12,000 shares over the next 18 months. Laroche operates out of the Chablis and Languedoc regions in France. It has been operating since 1850. ");document.write("

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A wine fund representative would be appointed to the Laroche supervisory board as part of its increased investment.

Mr Day said the group, run by Michel Laroche, offered strategic opportunities with a management team drawn from all over the world and most of their focus on export markets. Laroche has annual sales of around $50 million and its leading products are sold in 75 countries.

Its emphasis on producing branded product is a departure from traditional French producers which are less likely to focus on marketing and advertising.